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May 01, 1996

Cookware: The Future is Now

PrintCookware: The Future is Now  

By Laura Gorman
Whatever the product category, innovation is a sure way to create excitement and induce sales. Look at what the fax machine did for office communications, what the CD-ROM did for computers, and what Cuisinart did to the food-processing business.

In the past 30 to 40 years, cookware has grown from shiny pieces with black handles to a category filled with all manner of shapes, sizes, colors, surfaces, and metals — and refinements still continue. "However, the last true innovation in cookware was probably the nonstick surface," says Jeff Reigle, president of the Cookware Manufacturer's Association. Sure, nonstick surfaces have improved through the years, but the complacent retailer who sits back and waits for manufacturers to introduce the next new innovation could be waiting a while.

While there may be no sweeping innovations in cookware, that doesn't mean that the cookware category should be ignored. Innovation comes not only by introducing revolutionary new products but by changing the way of doing things. Retailers must realize that with a little bit of merchandising innovation on their part (with or without new products), they can infuse excitement into a somewhat sluggish category.

Is the Future Now?

There isn't a retailer anywhere who doesn't want to make a fair return on his or her investment. Retailing high-end cookware takes up a lot of space on the floor (and in the warehouse), as well tying up a lot of capital in inventory. Because of that investment, good business practice demands active promotion of the category rather than hoping the cookware's name will sell itself. Don't fall into the trap of waiting for the next innovation. "If you don't take care of now, there is no future," assures Reigle.

Continued Strength

There are many factors affecting the continued popularity of high-end cookware, and the most prevalent is the healthful cooking trend. Success lies in understanding that healthful cooking is more than a trend; it is a change in the way people live their lives. The oldest of the Baby Boom generation are just hitting their fifties and are becoming increasingly concerned with health considerations. "Retailers could surely benefit by trying to focus on health and nutritional benefits when promoting cookware," explains Reigle. They need to provide customers with "a thorough understanding of how healthy eating affects the tools they use, including nonstick surfaces, pasta inserts, steamers, broiling pans, and like items, which aid the consumer in preparing these new lifestyle meals."

The continued growth of the healthful cooking category goes hand in hand with other lifestyle changes. Today's kitchens are becoming the centerpiece of family gatherings and are used more and more for entertaining. The kitchen — the second living room — is the place where families assemble not only to eat but to visit. In new homes, the kitchen has become a more important part in architectural design, while remodeled kitchens are also growing in size to accommodate the television, the computer, and, of course, more space to cook.

Efficient food preparation is a must in our time-crunched lives. Cookware, viewed as an amenity in today's kitchen, enables a cook's stocks to simmer properly and the meat to sear quickly without sticking to the pan. Cookware that was formerly used solely by professionals is now commonplace in the residential setting. Today's cook wants cookware that will not only perform but will be durable and have a sleek design.

To fully cash in on the high-end cookware category, retailers must focus on certain key areas: customer service, strengthening relationships with manufacturers, and providing a unique selection of merchandise. A promotional program incorporating these three aspects will enable the retailer to successfully gear up for — The Future is Now!

Customer Service

Everyone is seeking value these days — a good product at a reasonable price. When customers make the decision to purchase high-end cookware, they are making an investment. And if they're going to make an investment, they want to know that it will be a good one. For that reason, consumers look to the retailer for guidance.

Sales staff who truly know what they are selling and can interact with customers have taken the first step in gaining customer confidence. How can a consumer be assured he is making the right decision on which high-end cookware to purchase if the staff doesn't know anything about that cookware themselves?

"Our staff has developed a lot of credibility with our customers," explains Judith Ets-Hokin of HomeChef cooking school and kitchen store. "All of our staff are at least basic cooks, and at home they use one or more pieces of the cookware that we sell. They even attend regular cooking sessions in the store."

Sales staff should never say, "I don't know how that works," or "I've never used that." If possible, give them the cookware to use at home. There is nothing more assuring to the customer than when sales staff can speak firsthand about the products they are selling. "Our staff are truly salespeople," says Ets-Hokin.

"When you get to higher-end cookware lines, most manufacturers offer some type of sales aid or marketing assistance to the retailer," explains Reigle. If you don't have enough sales staff to dedicate someone solely to the cookware section, check into the various types of manufacturer support offered. This support might consist of an interactive touch-screen computer placed on the sales floor near the cookware. Consumers can operate the computer themselves to find out what's available from that manufacturer, what makes their cookware a must for the consumer's kitchen — the answers, in short, to all their questions.

Alternate support might consist of playing a manufacturer-made video at the point of sale to explain a manufacturer's line of cookware. Both these point-of-purchase tools provide continuous sales support, especially when there is no staff available.

In addition to the in-store video loop, most cookware manufacturers provide a training video specifically designed to educate your staff on the different aspects of their cookware line. Play this at a staff meeting and discuss among the staff any questions they may have on the cookware they will be selling.

Extend your reach beyond the sale. Cooking classes are more popular than ever, as consumers look to prepare meals just like the professionals do. "We actually use the pots and pans we sell on the floor in our cooking class. This really shows the customer that we have confidence in what we are selling," says Ets-Hokin. To further nurture the bond between the customer and their newly purchased cookware, Ets-Hokin offers a free cooking class to those who recently made a cookware purchase over a certain dollar amount.

Other retailers suggest working with a specific cookware manufacturer (to help defray costs) to throw a cookware party, inviting all those customers who, in the last year, purchased over $200 of that manufacturer's cookware.

Newsletters have proven successful for many retailers who take the time to consistently provide this service to their customers. Once a month, six times a year, or quarterly, whatever best suits your needs, but make sure to include product specials and recipes to accompany that paella pan you're currently promoting. In a recent mailer for The Complete Kitchen newsletter, pressure cookers were promoted — an increasingly popular category for this Darien, Conn., retailer, says owner Warren Tuttle. The mailer explained how pressure cookers fit into today's lifestyles and provided a quick and easy risotto recipe to be made in the cooker. The newsletter is a great way to remind customers about your store and induce them to visit for a specific reason.

Finally, follow up with the customer a few weeks after the sale. Phone recent purchasers of cookware and ask if they're satisfied with the cookware they bought. This is also a great time to entice them back into the store with current specials. Talk it up — let them know that a 12-quart stockpot is on special this month.

Strengthen-ing Rela-tionships

Nurturing the manufacturer-retailer relationship is surely a good business practice. You're not enemies. You both have the same goal: to sell the cookware. Work with the manufacturers and ask about what support they can offer to promote their lines. It's no secret that to better compete in today's marketplace, manufacturers have to provide increased service to retailers; every retailer should take advantage of those opportunities.

This service might be in the form of manufacturers placing staff in the stores to promote and sell the products, dating programs, dealer incentives, or exclusives. "Manufacturers are becoming more attuned to the needs of the cookware retailer by providing certain advertising vehicles that they would not be able to do on their own," explains Nick Giovannucci of Fante's in Philadelphia. "More co-op advertising dollars are available, more training is offered, even more consumer advertising. Manufacturers are definitely interested in getting involved in programs, and each of these ways can help with the sale," assures Giovannucci.

"We're always trying to take advantage of vendor promotions," says Tuttle. "Right now we're doing a promotion with Calphalon where part of the money goes to Share our Strength charity." With rising material costs, and weakness in the dollar, you have to take advantage of the vendor promotions. "But the retailer has to actively ask for the support," adds Tuttle.

Selection

Right now, the retailer of high-end cookware has a wide range of choices from domestic and international sources. Some retailers feel that if you are into a line of cookware, you should be into it in-depth, with as large a selection as possible. Competition may carry the same line, but that's where the retailer must step in and explain the value of the cookware they carry.

"We carry lines that are for the most part carried elsewhere," explains Tuttle. "We have internally made the decision that we believe in these lines of cookware regardless of who carries them. And, we need to then support them." Tuttle gathers his staff occasionally at a dinner meeting in which they take the time to go over all the lines carried in The Complete Kitchen, including the promotional support they receive. "We're happy with the quality of merchandise that we are selling, so why shouldn't we actively promote it?" he adds.

On the other hand, some retailers believe that they can best compete if they carry different lines than their competition does. Those of this school preach not to carry what the mass-market or department stores carry, simply because it is a popular name brand. After all, that line of cookware may not serve the customer well. Nevertheless, says Reigle, "Brand recognition is a strong determinant in many sales, and the retailer may still have to carry some brand items because there is a demand."

Because brand awareness is popular, some retailers may rely solely on brand name to sell the cookware. A well-known brand name in a box on a shelf with no signage will not set you apart from your competition. "The most important thing is to provide displays that aren't just boxes stacked up, so the customer can touch and feel the cookware," instructs Ets-Hokin.

In today's retail climate, where brand names can be found at a multitude of distribution channels, competition heats up. Consumer confusion is also a factor. Same brand names may appear in different retail channels, and it's up to the retailer of high-end cookware to explain the differences between the cookware lines they carry and the ones the mass merchant is carrying.

"Listening to your customers is very important," says Giovannucci. What is it they are looking for, what are their needs? This will help the retailer understand better what they should carry. "If you don't have a product the customer is looking for they will go elsewhere. It's that simple," he adds. Talk, listen, speak with buyers and staff members — what is the message you hear? Don't make decisions based on your own belief that your customers will always trust and accept your product choice decisions. "Consumer demand must definitely drive what you carry. It would be stupid of the retailer to try to drive the market," he asserts.

When choosing what to carry, the retailer must not spread himself too thin. Carry a variety, but make sure that your strength in variety doesn't turn out to be your weakness. If you're going to be too broad based, you won't fully make a statement. A good selection offers choice and value, whether that be in sets or open stock.

"We don't always believe in selling cookware sets, because there is always one or two pieces that the consumer doesn't really use," says Tuttle. "We create a set that may consist of four separate lines, depending on what the customer's needs are. Our business rests on building one happy customer at a time, not selling someone a set that they don't necessarily need or won't be happy with solely to make a profit."

Ets-Hokin and Giovannucci agree. Start with one piece of cookware that the customer can take home and try out. They can then come back into your store and purchase something else to fit their need. However, these retailers also realize that there is a customer out there for both open-stock pieces and sets.

When promoting cookware sets, make sure that they make sense. Are they offering a solid value for the customer? Manufacturers have made available set configurations of cookware that offer today's consumer pieces that work within their lifestyle — a hostess set, for instance, for those who entertain. These pieces are perfect add-ons for the customer who already has the basics.

Create a display around these pieces to catch people's interest. Then sell them something else — a specialty piece like a pasta insert, a paella pan, or cookware with colors to infuse innovation into the category.

The Future?

The future success of the cookware category doesn't rest on who wins the war against the economy or competition down the street. The true challenge is the war on complacency.

Success doesn't have to be measured in terms of how much money you put into a promotion. Interesting presentation, innovative merchandising techniques, and good customer service can turn a lackluster category into something that you can turn and burn. "After all," says Tuttle, "the business is there for the taking, if you go after it."






Find Reports & Data

The Gourmet Retailer's 2009 Retail Yearbook

There are more than 700,000 independent retailers across the U.S. The Gourmet Retailer Magazine focuses on specialty food and kitchenware stores, profiling these entreprenuers in its print edition. Here is a collection of those specialty retailers in an easy-to-peruse yearbook.

The Gourmet Retailer's 2009 Deli Handbook

A must-read for anyone in the specialty deli business,The Gourmet Retailers 2009 Deli Handbook is now available online. Packed with new product information from top food shows around the globe-including the NASFT Fancy Food Show

CSNews' 2009 Industry Report Study

Industry sales climbed 11.4% to an all-time high of $633.9 billion last year, according to the Convenience Store News 2009 Industry Report, the longest-running compilation of sales and operational results in c-store retailing. 40 pages, including 69 charts.

CSNews' 2009 Realities of the Aisle Consumer Study

Food quality and in-store execution greatly impact a consumer's choice to purchase and consume prepared food from a convenience store, according to the new Realities of the Aisle consumer research study conducted by Convenience Store News, in partnership with Nielsen Homescan. Study is 11 pages and includes 14 charts.



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